Apple warns suppliers of lower parts orders for new iPhones: Nikkei

Apple warns suppliers of lower parts orders for new iPhones: Nikkei

Apple warns suppliers of lower parts orders for new iPhones: Nikkei

The Nikkei Asian Review reported Friday that Apple has told component suppliers that it will build about 20% fewer units of new model iPhones in the second half of the year compared with the same period a year ago. "For the three new models specifically, the total planned capacity could be up to 20 percent fewer than last year's orders". A source revealed the expected numbers for this year are 80 million, or similar to last year's performance.

Apple may have been riding the iPhone wave over the past years, but as smartphones become more ubiquitous, the firm appears to be taking a more cautious tack.

Shares are up 11% this year.

Factset and Reuters do not provide estimates for new model iPhone sales. The iPhone X's high starting price of $999 has enabled Apple to hit record average selling prices for iPhones, and reports have conflicted about whether this year's top models will be equally or less expensive.

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Apple (AAPL) and a host of its chip suppliers fell Friday on a report that the consumer electronics giant will make fewer new iPhones this fall than it did a year earlier. Apple plans to introduce three new iPhone models in September: two with OLED displays and one with an LCD screen, analysts say.

Despite the media reports that demand for the $1,000 iPhone X has fallen, Apple's market cap has continued to rise and is approaching $1 trillion. "Apple is doing enough, in general, to keep the ball moving forward".

US-based supplier Advanced Micro Devices, Micron Technology Intel, Broadcom, and Qualcomm were all down between 1 per cent and 4 per cent.

The iPhone has long served as Apple's biggest revenue driver. However, in an attempt to offset the impact of a weakening smartphone market, the company has been focusing on services as a path to growth.

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